Whitney Tilson is the founder and managing partner of T2 Partners and the Tilson Mutual Funds. Along with managing these funds he also authored several investing books as well as numerous articles for Forbes and similar money magazines. The guru is an author and a disciple of the Graham-Dodd-Buffett-Munger school of value investing.

During the third quarter the guru purchased 11 new stocks, bringing his total portfolio holdings to 40 stocks valued at $63 million. The following five companies represent Tilson’s top five third quarter holdings.

Tilson’s largest holding is in American International Group where he maintains 175,501 shares. His position in the company represents 13.5% of his total portfolio as well as 0.01% of the company’s shares outstanding.

During the third quarter Tilson made a significant increase in his holdings of 312.94%. The guru purchased a total of 133,001 shares of the company’s stock in the quarterly price range of $44.22 to $50.27, with an estimated average quarterly price of $47.53. Since then the price per share has increased approximately 1.4%.

Tilson’s historical holding history:

American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

The top guru shareholders of AIG:

1. Bruce Berkowitz: 86,148,865 shares, representing 5.84% of the company’s shares outstanding and 50.1% of his total portfolio.

2. Fairholme Fund: 79,280,825 shares, representing 5.37% of the company’s shares outstanding and 51.2% of its total portfolio.

3. HOTCHKIS & WILEY: 15,396,372 shares, representing 1.04% of the company’s shares outstanding and 3.4% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

American International Group has a market cap of $71.41 billion. Its shares are currently trading at around $48.50 with a P/E ratio of 27.30, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Tilson’s second largest position is in Howard Hughes where the guru maintains 62,824 shares. His holdings in the company represent 11.1% of his total portfolio and 0.16% of the company’s shares outstanding.

Over the duration of the third quarter Tilson reduced his holdings -12.21% by selling a total of 8,740 shares. He sold these shares in the quarterly price range of $101.52 to $117.01, with an average quarterly price of $109.59. Since then the price per share has increased approximately 1.9%.

Tilson’s historical holding history:

Howard Hughes is engaged in the development of master planned communities and other strategic real estate development opportunities across the U.S. The company operates its business in two lines of business: Master Planned Communities and Strategic Development.

Howard Hughes’ historical revenue and net income:

The analysis on Howard Hughes reports that the company’s revenue has been in decline over the past three years and its price is near a 5-year high.

The top guru shareholders:

1. Murray Stahl: 5,511,573 shares, representing 13.93% of the company’s shares outstanding and 9% of his total portfolio.

Tilson’s third largest position is in Berkshire Hathaway where he holds on to 50,424 shares of the company’s stock. His holdings represent 9% of his total portfolio.

During the past quarter Tilson cut his holdings a slight -5.76% by selling 3,083 shares of Berkshire Hathaway. He sold these shares in the quarterly price range of $111.22 to $118.94, with an estimated average quarterly price of $115.36. Since then the price per share has decreased approximately -1%.

Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

2. Meryl Witmer: 11,526,988 shares, representing 0.49% of the company’s shares outstanding and 6.9% of her total assets managed.

3. Ken Fisher: 5,136,928 shares, representing 0.22% of the company’s shares outstanding and 1.4% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

Berkshire Hathaway has a market cap of $268.1 billion. Its shares are currently trading at around $114.71 with a P/E ratio of 14.20, a P/S ratio of 1.50 and a P/B ratio of 1.30. Berkshire Hathaway had an annual average earnings growth of 9.10% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

The guru’s fourth largest holding is in dELiA*s where, as of the close of the third quarter, he held on to 3,797,319 shares of the company’s stock. His position in the company makes up for 7.3% of his total portfolio and 11.56% of the company’s shares outstanding.

During the third quarter Tilson increased his holdings 43.18% by purchasing a total of 1,145,220 shares of the company’s stock. He bought these shares at the estimated average quarterly price of $1.28 per share, and since then the price per share is up about 12.5%.

Tilson’s historical holding history:

dELiA*s is a multi-channel retail company comprised of two lifestyle brands mainly targeting teenage girls and young women. It generates revenue by selling to consumers through websites, direct mail catalogs and retail stores.

dELiA*s’ historical revenue and net income:

The analysis on dELiA*s reports that the company’s revenue has been in decline over the past year, its price is sitting near a 2-year high of $1.57 per share and its operating margin is expanding.

dELiA*s has a market cap of $68.9 million. Its shares are currently trading at around $1.43 with a P/S ratio of 0.20 and a P/B ratio of 1.40. The company had an annual average earnings growth of 9.30% over the past five years.

Tilson’s fifth largest position goes to Air Products & Chemicals where he maintains 35,000 shares of the company’s stock. His position in APD represents 5.9% of his total portfolio and 0.02% of the company’s shares outstanding.

Tilson bought in to Air Products for the first time of the most recent quarter. So he purchased his shares in the quarterly price range of $90.75 to $110.02, with an estimated average quarterly price $102.72 per share. Since then the price per share has increased approximately 5.1%.

Tilson’s historical holding history:

Air Products & Chemicals provides atmospheric gases, process and specialty gases, performance materials, equipment and services, to a wide range of industries. The company is also a supplier of hydrogen and helium. It also provides semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.

Air Products’ historical revenue and net income:

The analysis on Air Products and Chemicals reports that the company’s price is near its 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding. The GuruFocus analysis also reports that the company has issued $1.8 billion over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

Air Products & Chemicals has a market cap of $22.65 billion. Its shares are currently trading at around $108.04 with a P/E ratio of 22.90, a P/S ratio of 2.30 and a P/B ratio of 3.30. The company had an annual average earnings growth of 4.40% over the past ten years.

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